Birkenstock has today forecast 2024 revenue above estimates after beating analysts' expectations for fourth-quarter sales on higher pricing and strong demand, in the German luxury sandal maker's first results since going public.
The company's sandals and clogs retail for as much as $350 a pair, and the upbeat results come as signs emerge of ebbing global luxury demand, as well as lacklustre sales expectations from Nike and JD Sports Fashion.
Sales are getting a lift from Birkenstock's investments to tap into the post-pandemic move away from formal dressing to more casual and informal wear, mainly in the US.
Sales in the Americas region jumped 30% to €187.24m in the quarter and Birkenstock said China and India were also key growth drivers in fiscal 2023.
The company's quarterly revenue rose to €374.54m from £321.61m a year earlier, compared with market expectations of €357.39m, according to LSEG data.
Average selling price jumped 14% while unit growth was 6% in fiscal 2023 from a year earlier, Birkenstock said.
The company forecast fiscal 2024 revenue to be between €1.74 billion and €1.76 billion, compared to analysts' expectations of €1.72 billion. Still, sales growth of 17-18% represented a decrease from 20% in 2023.
Birkenstock expects 2024 adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) between €520-530m on a constant currency basis.
Shares ended 2023 about 19% higher after a disappointing market debut in October.
